Traditional risk controls, the CFTC observes, were designed for human judgment and human speed, and they must be reevaluated in light of the “electronic trading platforms that can execute repetitive tasks at speeds orders of magnitude greater than any human equivalent.

The CFTC today released a concept release relating to risk controls and system safeguard for automated trading. Among the issues addressed are pre-trade risk controls, post trade reports and system safeguards to promote safe and orderly markets.